Abdullah Al Hashmi, CFO of OMIFCO, said that the company's listing on the Muscat Stock Exchange on Wednesday represents a historic milestone in its journey, stressing that the company had no concerns about the timing of the offering despite it coinciding with the summer period, which usually sees a decline in liquidity, and also coinciding with market corrections following the strong gains recorded during the past year and the first months of 2026.

Al Hashmi added, in an interview with Al-Arabiya Business on Wednesday, that the strong demand from retail and institutional investors during the subscription reflected the market's confidence in the company, noting that the offering was priced at the top end of the price range, reflecting the success of the subscription process.

He explained that the pricing process went through multiple stages, including intensive studies and analyses in cooperation with the issue manager and financial advisors, stressing that the price set was 'fair' from the perspective of the company and all parties involved in the offering process.

Regarding the valuation metrics that some investors found attractive, Al Hashmi said that the final price came after in-depth reviews and analyses that took into account various factors related to the company's performance and the sector, adding that the advisory bodies and the issue manager played a key role in reaching the final valuation.

Profit Margins.

Regarding the company's profitability, Al Hashmi pointed out that OMIFCO still maintains strong levels of profit margins despite the implementation of the new agreement with the main gas supplier starting from mid-2025, noting that having a long-term gas supply agreement extending for ten years provides great clarity and stability for the company's business.

He added that the company also benefits from guaranteed sales contracts extending for five years, which provides clearer visibility on revenues and profitability in the coming years, expecting profit margins to remain at high levels.

Commenting on developments in the urea and ammonia markets, Al Hashmi said that the geopolitical tensions the region witnessed recently had a clear impact on global commodity markets, including fertilizers, reflected in significant price rises during the crisis period.

He added that global demand for urea is supported by strong fundamental factors related to global population growth and food security needs, explaining that these factors continue to support demand for fertilizer products despite increased supply in the market.

He pointed out that the gap between supply and demand still favors producers, stressing that the long-term fundamentals of the urea and ammonia markets remain positive.

Regarding the operation of the company's plants at rates exceeding design capacity, Al Hashmi explained that OMIFCO currently produces at about 110% of the design capacity for urea plants, and between 105% and 107% for ammonia plants, stressing that these levels are achieved with official approvals from the plants' technology provider.

He added that the company sees no operational risks associated with these rates, given the maintenance programs and operational plans in place, noting that the company's operational and financial performance faces no challenges related to current production capacities.

Regarding the concentration of exports in the Indian market, Al Hashmi said that about 70% of urea exports have been directed to India in recent periods due to attractive prices and higher profit margins in that market, but he stressed that the company does not rely on any single market directly.

He explained that OMIFCO sells its production through OQ Trading, which has a wide global marketing and distribution network, giving it great flexibility in directing shipments to the most profitable markets around the world.

He added that export destinations change according to available commercial opportunities and profitability levels in each market, which mitigates geographic concentration risks and gives the company greater ability to benefit from global market movements.

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